Israel's economy grew 3% in 2017

Growth Photo: Shutterstock

GDP growth in Israel slipped from 4% in 2016, the Central Bureau of Statistics reports.

The Central Bureau of Statistics today published its summary of 2017. As forecast, the economic results were good, but not as good as in 2016; there was a decline in almost every sector. The estimate is an initial one, not final. The budget deficit reached its lowest point in recent years as a result of tax revenue surpluses and campaigns by the Israel Tax Authority.

According to the figures, GDP grew 3.0% in 2017, following rises of 4.0% in 2016 and 2.6% in 2015. Seasonally adjusted figures for GDP by quarters show that GDP was up 3.5% in the third quarter (4.1% in the previous estimate), after rising 2.6% in the second quarter and 0.9% in the first quarter, in annualized figures.

Israel's population grew 1.9% in 2017, meaning that per capita GDP was up 1.0% in 2017, following a 1.9% rise in 2016. Per capita GDP totaled NIS 144,500 in 2017, $40,100, in current prices.

For the sake of comparison, OECD figures show that per capita GDP rose 1.9% in its member countries. The Central Bureau of Statistics said that its preliminary estimates for 2017 as a whole were based on figures from 9-11 months and projects for the missing months.

Private consumer spending rose 3.0% in 2017, 1.1% per capital, following a 6.1% increase in 2016. Per capita spending on durable goods dropped 10.9%, and per capita spending on semi-durable goods (clothing , footwear, and so forth) grew 4.7%. Per capita spending on current consumption (food, housing, fuel, services, etc.) was up 2.2%.

Government sector deficit

The current account deficit in the government sector totaled NIS 8 billion in 2017, 1.1% of GDP, compared with NIS 15.6 billion in 2016, 1.8% of GDP, and a 2.9% budget deficit target.

Published by Globes [online], Israel Business News - www.globes-online.com - on December 31, 2017

© Copyright of Globes Publisher Itonut (1983) Ltd. 2017

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Growth Photo: Shutterstock
Growth Photo: Shutterstock
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